Bloomberg News reports that many executives had taken pride in designing an investment portfolio of assets that promised predictable returns. Despite this scenario, these executives made a risky bet when digital tokens rallied to records last fall.
What does Wealth mean to you?
Since 2017, crypto has suffered four major crashes, as such busts related to the same are not unheard of. However, since these digital tokens have assumed greater mainstream appeal during the last year’s bull market, the agony of the recent crashes is increasingly being felt by many individuals. Many of these individuals have caught the crypto bug from those close, giving rise to some awkward talks and conversations across the world among the closest.
Cryptocurrencies have dropped almost $2 trillion of their market value since the time the largest digital currency reached its peak in November. Investors have lost billions as many crypto firms imploded along with the hedge funds. As such, an individual who purchased the digital tokens two years earlier would have found his money doubled. Experts also say that if investors had invested towards the bottom of the bear market of 2018, these individuals would have earned revenue that would have been 600% more.
Popularity at its peak
Bloomberg News reports that the number of Bitcoin addresses attained 1.2 million as of April 2021. One of the key drivers behind injecting new money into cryptocurrencies includes personal relationships; around three-quarters of the traders belonging to the age group below 40 stated that an attempt to compete with friends, acquaintances and family compelled them to put their money into the crypto products that are included in the category of high risks. Per a survey by a financial regulator in the United Kingdom and a report published in October, this was revealed.
One of the main beneficiaries at the beginning of 2020 was crypto since the coronavirus outbreak caused governments and central banks to unleash unprecedented stimulus. The easy liquidity, along with the savings that the governments further fattened and lower spending on travel, triggered a rush to invest in the risky assets towards the latter part of 2021.
This was when the escalating consumer prices were emerging as a major cause for concern for the central banks following over a decade of subdued inflation. Just as the Federal Reserve started pivoting, so did the crypto investors. Following a peak of nearly $69,000 at the beginning of November, Bitcoin, the largest digital token and the crypto ecosystem started to slide.
